Mohammed Javad Azari Jahromi, Minister of Information and Communication Technologies of Iran, called for the legalization of Bitcoin mining business in Iran. The main reason for the initiative of the minister was the increasing reports of the illegal use by the miners of bitcoin of cheap energy from Iran.
The government is obliged to streamline the activities of operators involved in the mining of cryptocurrency and issue them special licenses.
Previously, the majority of cryptocurrency mining operations in the world were conducted in China, but today Iran is turning into a new center in this area, the minister said.
According to the minister, electricity prices in Iran are significantly lower than in many countries of the world. So in some European countries the price of one kilowatt reaches 20 cents, while in Iran this figure is only 9 cents.
… this is due to the reserves of Iranian gas, which are used by the country’s power plants. This turns Iran into the most attractive country in the world for miners cryptocurrency, Jahromi concluded.
According to the Minister, the equipment for the extraction of cryptocurrency has been massively smuggled out of China into Iran recently.
According to the Iranian Ministry of Energy, more than 700 megawatts of electricity are used to produce digital currencies. It violates the rights of ordinary people, he said.
The position of the Minister of Information Technology has found support among legislators. Ali Akbar Karimi, a member of the economic committee of the Iranian parliament, said the government should urgently “… prepare a specific bill to determine the fate of mining cryptocurrencies, such as Bitcoin (BTC), and trade currencies using this digital money.”
Cryptocurrency mining has become a widespread activity in Iran, and it consumes significant power, which creates problems for the country, especially in the hot season, the parliamentarian stressed.
In April 2018, Iran banned banks from conducting operations related to trade and exchange of cryptocurrencies.Recall that at the end of June it became known that the enterprising miners of Iran use mosques for bitcoin mining, in connection with the free supply of electricity for religious institutions of the country.